The U.S. Department of the Treasury’s Office of Foreign Assets Control imposed sanctions on Iranian cryptocurrency exchange BitBank, accusing the platform of facilitating substantial Bitcoin transfers linked to the Islamic Revolutionary Guard Corps. The action, announced on September 17, also targets the exchange’s software developer and three associates of Iranian financier Babak Zanjani.

According to Treasury, BitBank served as a key channel in a network used to move hundreds of millions of dollars worth of Bitcoin to the IRGC between June and July. Officials further stated that the Hormuz Safe Marine Services Authority has routed payments collected from vessels transiting the Strait of Hormuz through the exchange since June, directing those funds toward Iranian government-linked recipients.

Scope of the Designations

OFAC listed BitBank, described as an Iran-based financial and insurance business established in 2024, along with its developer, Pishtaz Simorgh Electronic Trade Company. The company is identified as a subsidiary of the previously sanctioned Dot One Value Creation Group. Three individuals connected to Zanjani’s network were also designated: Hossein Ali Zaker Hossein, Mohammad Mahdi Zaker Hossein, and Seyed Adel Heidari.

Treasury characterized these parties as key components of the Iranian regime’s digital assets-based sanctions evasion infrastructure. BitBank and related entities were designated under Executive Order 13902 for operating in Iran’s digital asset sector. U.S. persons are required to block any property or interests in property of the designated parties that come under their control. Entities owned 50 percent or more by blocked parties fall under the same restrictions. Certain foreign dealings may expose non-U.S. parties to secondary sanctions risk.

Officials noted that BitBank is distinct from the separately named Japanese licensed exchange bitbank, inc., which was acquired by SBI Holdings earlier in the year. The Iranian platform’s designation lists it as established in 2024.

Connection to Hormuz Shipping Payments

Treasury previously designated the Hormuz Safe Marine Services Authority in July, alleging it formed part of an IRGC-linked arrangement involving maritime services and insurance for vessels passing through the Strait of Hormuz. The authority accepted Bitcoin and other digital assets. In the latest action, officials stated that Hormuz Safe has used BitBank to transfer the payments it collected onward to the IRGC and related Iranian entities.

The arrangement is described as generating revenue through services that include insurance coverage against risks associated with Iranian activity in the waterway. By linking the crypto exchange to these flows, the Treasury is targeting both the collection mechanism and the on-chain infrastructure used to move the proceeds.

Part of Broader Operation Economic Outcast

The BitBank designations form part of Operation Economic Outcast, a campaign launched on August 24 that has identified nearly 60 entities, individuals, and vessels connected to Iran. The effort includes determinations under Executive Order 13902 covering digital assets, technology, gold, aviation, and shipping.

Earlier in 2026, OFAC sanctioned multiple Iranian digital asset platforms. In January, action was taken against exchanges linked to Zanjani. In June, authorities designated Nobitex and several other exchanges. On August 7, Shelbit and Aban Tether were added. In July, more than $130 million in USDt held in Iran-linked wallets was ordered frozen.

Zanjani himself has a lengthy sanctions history. Officials have described him as a previously designated financier who rebuilt digital asset operations after earlier legal proceedings in Iran. Treasury has attributed prior activity involving his network to the movement of substantial value connected to the IRGC.

Implications for Digital Asset Activity

The September 17 action expands the focus from individual wallets or isolated transfers to the corporate and software infrastructure supporting Iran’s digital asset sector. Under the sectoral determination, foreign firms operating in or supporting that sector face potential sanctions exposure without a requirement to prove separate links to terrorism or other designated parties.

OFAC has cautioned foreign financial institutions that engagement with previously designated Iranian exchanges may result in loss of access to U.S. correspondent banking. The designations signal continued pressure on both domestic Iranian platforms and any international intermediaries facilitating related flows.

Property of the newly designated parties located in the United States or held by U.S. persons must be blocked. The listings remain subject to OFAC’s administrative processes, including the possibility of petitions for removal from the Specially Designated Nationals list.